From iCar dream to conquering the auto market
After years and years of anticipation, it won't happen. Apple just canceled its car project Titan.
The media has lit up with articles about this retreat and implied failure. The common theme in these posts are strategic changes, repeated delays and leadership changes.
In 2022, Apple said that by 2026 there would be an electric, advanced self-driving car. Later, it was pushed to 2028. Apple took flack from market observers while another CEO made promises about delivering a self-driving car by 'next year' (Good luck with that). Well, now it is 2024 and self-driving cars are still in testing mode or their makers are being investigated by regulators for various accidents.
The market for self-driving cars is no longer that hot. Even the demand for Electric Vehicles (EV) is slowing down. A few things are contributing to this situation. First, there's the price. Then, there’s the (as yet unrealized) ability to charge your car as easily as pumping gas to your gas guzzler. Another problem will become more painful in near future - not enough electricity and a distribution network unable to handle the increased load.
Where does this leave Apple after a decade and billions of dollars spent on the development of the iCar?
Well, first it will allow Apple to redirect the newly found billions into AI, per the announcement by Mr. Cook during its annual shareholder meeting: Mr. Cook said that the iPhone maker sees 'incredible breakthrough potential for generative AI, which is why we're currently investing significantly in this area. We believe that will unlock transformative opportunities for users when it comes to productivity, problem solving and more.'
Second, it will release Apple from being a competitor with other car companies, especially the new ones which will soon be producing so many cars that nobody will want to get into this business.
Instead, Apple will be able to dominate the car market.
Say, what?
Yes, the one small thing which can be easily overlooked in this whole excitement about electric (and non-electric), self-driving cars is Apple's CarPlay. It is the interface between your car and your iPhone.
Yes, all the new cars have navigation, radio, some even still a CD player. But what Apple has is this small pocket computer which contains your music, your contacts, your phone, your navigation, your Siri, your WhatsApp. It is you.
And you are not going to buy a car where you can not be you, right?
When you are an automaker, you know how to build a car. But do automakers know how to build an iPhone into a car? Unlikely. That’s not what they do.
Of course, there are far more devices powered by Android OS by Google than Apple's iOS, but just last year Apple shipped more devices than Samsung. Not be held completely hostage by Apple, some car manufactures are also implementing the Android Auto to provide similar functionality.
Last time, I wrote about the power of the Apple brand when implementing better security for its messaging platform. Now, Apple is taking over the car. Just read the description from its own website: 'This next generation of CarPlay is the ultimate iPhone experience for the car. It provides content for all the driver’s screens including the instrument cluster. This ensures a cohesive design experience that is the very best of your car and your iPhone — with designs for each automaker that express your vehicle’s character and brand. Vehicle functions like radio and temperature controls are handled right from CarPlay. And personalization options ranging from widgets to selecting curated gauge cluster designs make it unique to the driver.'
Apple is ensuring a cohesive design experience! The car manufacturer is irrelevant. It has to work with Apple to 'express your vehicle’s character and brand'.
There is not just a recurrent pattern. There is a recurrent tsunami of strategy and ruthless execution washing Apple's competition to oblivion.